Research company Mori loses the battle for independence

MORI, the independent political opinion research group, has been snapped up by a French rival in an £88 million deal.

Previously half-owned by its management and employees, Mori (Market & Opinion Research International) has been acquired by French market research group Ipsos.

Ipsos, which is listed on the Paris stock market, has been noted for its aggressive expansion plans, having bought 40 companies around the world over the past 15 years.

Mori, which is well-known for its pre-election political polls, was founded in 1969 by Sir Bob Worcester.

The firm, which in April announced it would double the capacity of its telephone research centre in Edinburgh, most recently saw investment from Isis Equity Partners and Caledonian Investments, which bought a 49 per cent stake in Mori last year.

The two funds are believed to be taking cash in return for selling their shares, while Mori employees will take half of the proceeds in cash and half in Ipsos shares.

Four years ago, Mori completed a management buyout valued at 30m and backed by 3i - the firm's longest-serving backer - having acquired a 25 per cent stake for just 2m in 1986.

Ipsos is believed to have been impressed by Mori's recent rate of growth under chief executive Brian Gosschalk.

The company's annual results, which were filed during the summer, show Mori is one of the fastest-growing agencies in the UK, with a turnover of 44m and operating profits of more than 6m.

In his last chairman's statement Sir Bob, who stepped down in June but remained Mori's biggest shareholder, said: "It's hard to believe that it started in 1969 as a one-man band, with two members of staff, a turnover of 50,000 and a dozen clients."

Sir Bob subsequently became life chairman of the company, while Sir Andrew Likierman, a non-executive director of Barclays Bank and the Bank of England, took on the role of chairman.

Ipsos, which was founded 30 years ago by Monsieur Truchot and Monsieur Lech, also reported strong growth with revenues of 417.3m in 2004. In the first six months of the year, it generated pre-tax profits of about 14.1m - up 31.4 per cent.

It aims to become a major international market research company, with involvement in all key regions of the world.

The French company added it would issue around 5m of equity to key Mori executives as part of its acquisition.

Last week, a Mori poll showed that seven out of ten Londoners believe British involvement in the Iraq war contributed a "great deal" or a "fair amount" to the July 7 bomb attacks.